The Analytical Overview of the Main Currency Pairs on 2017.11.07

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16104

Open: 1.16097

% chg. over the last day: -0.03

Day's range: 1.15856 – 1.16156

52 wk range: 1.0341 – 1.2069

At the moment, the EUR/USD currency pair is in a sideways trend. The following key support and resistance levels can be identified: 1.15800 and 1.16200, respectively. Investors expect additional drivers. We recommend you to keep track of current information on the tax reform in the US and the new Fed's chairman. Positions must be opened from the key levels.

News background on 2017.11.07:

At 17:00 (GMT+2:00) the data on the number of open jobs in the JOLTS labor market will be released.

Today, the head of the ECB and the Fed's chairman will also give speeches.

The indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram has begun to decline and moved to the negative zone, which signals a bearish sentiment on EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals the sale of EUR/USD.

Trading recommendations

Support levels: 1.15800, 1.15500

Resistance levels: 1.16200, 1.16600, 1.17000

If the price fixes below the support level of 1.15800, we recommend considering sales of EUR/USD. The movement is tending to 1.15500-1.15250.

Alternative option. If the EUR/USD quotes overcome the level of 1.16200, it is necessary to look for entry points to the market to open long positions. The target movement level is 1.16600-1.16850.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30693

Open: 1.31663

% chg. over the last day: +0.73

Day's range: 1.31413 – 1.31777

52 wk range: 1.1450 – 1.3618

Yesterday, the GBP/USD currency pair corrected after a significant drop last week. The pound rose against the US dollar by more than 100 points. The trading instrument found resistance at the level of 1.31750. The local support is the mark of 1.31450. Currently, GBP/USD is consolidating. We recommend opening positions from the key levels.

The news background on the economy of the UK is fairly calm today.

The indicators don't send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.31450, 1.31250, 1.30750

Resistance levels: 1.31750, 1.32400

If the price fixes above 1.31750, further growth of GBP/USD is expected. The movement is tending to 1.32250-1.32400.

Alternative option. If the price fixes below the local support of 1.31450, it is necessary to consider sales of GBP/USD. The target level of movement is 1.31000-1.30750.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.27564

Open: 1.27032

% chg. over the last day: -0.37

Days' range: 1.27030 – 1.27394

52 wk range: 1.2059 – 1.3795

Yesterday, the Canadian dollar continued to strengthen against the US dollar. The fall in the USD/CAD quotations exceeded 50 points. The Canadian dollar was supported by the positive dynamics of oil quotes. The trading instrument reached a round level of 1.27000. Nevertheless, at the moment the technical pattern is ambiguous. The key trading range is 1.27200-1.27500. The positions must be opened from these marks.

We recommend you to pay attention to the speech of the head of the Bank of Canada.

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals the purchase of USD/CAD.

Trading recommendations

Support levels: 1.27200, 1.26750

Resistance levels: 1.27500, 1.27750, 1.28000

If the price fixes above the 1.27500 mark, we recommend considering buying USD/CAD. The movement is tending to 1.27750-1.28000.

Alternatively, USD/CAD may drop to the level of 1.27000-1.26750.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.999

Open: 113.701

% chg. over the last day: -0.35

Day's range: 113.696 – 114.289

52 wk range: 99.53 – 118.67

In the Asian trading session, the USD/JPY currency pair kept the key support of 113.750, which triggered aggressive purchases. At the moment, the price is testing the resistance level of 114.200. The trading instrument has the potential for further growth. Nevertheless, positions need to be opened from the key levels. We recommend paying attention to the yield of US government bonds.

The publication of important economic reports from Japan is not planned.

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram has begun to rise and is above the signal line, which indicates the growth of USD/JPY.

Stochastic Oscillator is located in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 114.000, 113.750

Resistance levels: 114.400, 114.700

If the price fixes above the level of 114.400, we recommend you to look for entry points to the market to open long positions. The target level of movement is 114.700-115.000.

Alternative option. If the price fixes below the round level of 114.000, it is necessary to consider sales of USD/JPY. The movement is tending to 113.750-113.500.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.